REVERSE CHARGE MECHANISM

Goods and Services Tax - GST Law and Procedure - 07C - Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the . Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. There are two type of reverse charge scenarios provided in la .....

the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Similarly, section 9(4) of CGST/SGST (UTGST) Act, 2017/section 5(4) of IGST Act, 2017 provides that the tax .....

sis. However, supplies where the aggregate value of such supplies of goods or services or both received by a registered person from any or all the unregistered suppliers is less than five thousand rupees in a day are exempted. Registration A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of ₹ 20 lakhs (Rs. 10 lakhs for special category states except J & K) is not applicable to him. ITC A supplier cannot take ITC of .....

est of: - (a) date of receipt of goods; or (b) date of payment as per books of account or date of debit in bank account, whichever is earlier; or (c) the date immediately following thirty days from the date of issue of invoice or similar other document. In case of supply of services, time of supply is earliest of: - (a) date of payment as per books of account or date of debit in bank account, whichever is earlier; or (b) the date immediately following sixty days from the date of issue of invoice .....

ell as refund voucher, if tax is payable on reverse charge. 2. Maintenance of accounts by registered persons: Every registered person is required to keep and maintain records of all supplies attracting payment of tax on reverse charge 3. Any amount payable under reverse charge shall be paid by debiting the electronic cash ledger. In other words, reverse charge liability cannot be discharged by using input tax credit. However, after discharging reverse charge liability, credit of the same can be .....

Services provided by way of sponsorship to any body corporate or partnership firm Any person Any body corporate or partnership firm located in the taxable territory 5. Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding: - (1) renting of immovable property, and (2) services specified below: - (i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided t .....